Yorba Linda's city-owned Black Gold Golf Club raises greens fee to cover minimum wage increase

Patrons of Yorba Linda's city-owned Black Gold Golf Club will begin paying higher greens fees April 15, mostly to cover increased costs incurred by the state-mandated $12 hourly minimum wage that took effect Jan. 1.

And more increases are planned for future years, as state law calls for the minimum wage for large employers to jump to $15 per hour by 2022, according to Parks and Recreation Director Mike Kudron.

Kudron told City Council members at a March 5 meeting that he plans to ask for “incremental” increases rather than a big increase in three years, as costs mount to pay the many minimum wage employees at the facility. The last price hike came in 2017.

Also, Finance Director Scott Catlett told council members that the club's current $300,000 to $500,000 surpluses are being used to erase $2.5 million in operating losses posted from the years before the city used general fund reserves to eliminate the club's bond obligations.

Catlett also said the separate golf course fund is expecting to pay back the $19 million owed to the city general fund for the 2013-14 fiscal year payoff of the club's construction bond debt.

Maximum greens fees will increase from $1 to $5 for resident and non-resident players, senior citizens (starting at age 55) and juniors, depending on day and time played. Membership fees for three Player's Club categories will jump $10.

Monday through Thursday rates for residents will be $73, non-residents $95, resident seniors $49 and non-resident seniors $58. Friday rates: $83 for residents and $105 for non-residents. Saturday, Sunday and holiday rates: $93 for residents and $125 for non-residents.

Overall, the club's new rate schedule lists fees in 17 categories in each of the Monday through Thursday; Friday; and Saturday, Sunday and holiday pricing periods, ranging from $27 to $125 per round.

However, in a written report, Kudron noted the club “uses dynamic pricing, which is common in the golf industry, to regularly adjust green fees,” adding, “These daily adjustments account for times of peak demand as well as slow periods and when weather conditions are not optimal for golf.”

The daily average rate for the most recently completed fiscal year was $52.47, he reported.

The higher fees are expected to raise an additional $70,000 to $100,000 yearly, Kudron stated. He noted the difference in salaries for minimum wage workers from 2018 to 2019 would be about $70,000. Some of the added revenue will pay for higher costs in other areas.

Based on a market rate survey, Kudron reported the club “will continue to be positioned as a value-priced, high-end daily facility in Orange County.” Last year's green fee revenue was up about $225,500 from the previous year, totaling close to $3 million.

The new fee schedule was approved on a 4-1 vote, with Councilman Carlos Rodriguez – who said he wasn't a golfer – suggesting the increased fees only apply for non-residents.